Top 5 Reasons to Avoid Bankruptcy in Illinois and Opt for Debt Settlement Using Benveniste Law Offices
When a creditor takes a person who is heavily in debt to court, there are two distinct stages to expect. First, there’ll be a court judgment to quantify the total amount of money the individual owes the creditor. The next stage will be the creditor seeking a judgement against the debtor for the amount owed. However, having a judgment enforced may require additional legal actions. Even though the person in debt legally owes the creditor, the debtor can claim financial hardship which can allow him or her to legally put off making payments. When this happens, the creditor can use a citation to discover assets, forcing the individual in debt to disclose all of their available assets.
Citation of the Debtor
With a citation to discover assets, the person in debt receives a notice for a court date and must attend the hearing. At the hearing, the individual is required to answer questions under oath about their available assets, including the following:
- Financial accounts
- Income
- Real property
- Valuables
Once the person’s assets have been disclosed, the court can allow the creditor to take the debtor’s property or garnish wages in order to satisfy the debt owed. In the state of Illinois, however, there are legal limits pertaining to which assets a creditor can take. The following applies to this law:
- Certain assets are exempt, such as disability benefits, divorce payments, and social security.
- There is a formula that determines what maximum amount of money that can be garnished from the individual’s wages.
- The individual can claim exemption on any and all property that is valued at $4,000, as well as a vehicle that has an equity interest not exceeding $2,400.
Citation of Third Party
In some cases, the creditor must file a citation to discover assets against a third party if the person’s assets are held by said party. In most situations, this third party would be a bank. The creditor is required to inform the individual in debt and the third party of the citation. Afterward, the debtor and third party have to appear in court to respond to questions about the assets. The court can determine whether the third party must relinquish any assets to satisfy the debt.
Enforcement of Judgment
There are certain situations in which the person in debt can be held in contempt of court. This can come as a result of the following:
- Not showing up to the hearing
- Lying about assets
- Not following the repayment instructions issued by the court
By having experienced legal representation when facing a creditor lawsuit, you can drastically alter the outcome of your case. Without a lawyer by your side, the creditor will have the upper hand as they can take advantage of your limited legal knowledge. Allow Heather Benveniste with Benveniste Law Offices to fight for you. With seven years of experience as a collections attorney in the debt buying industry, she has insight as to how a creditor will approach a lawsuit. She can use that unique knowledge to your advantage. Contact us today for a free case evaluation to discuss your legal options.
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